Applied Optoelectronics, Inc. has entered into a new Credit Agreement with East West Bank, providing for $200 million in total commitments. This new facility, which replaces the company's prior credit agreement, will be used for equipment financing, working capital, and general corporate purposes.
Key Details
- Facility Details: The new credit facility, dated October 30, 2026, consists of a $170 million initial term loan and a $30 million revolving credit facility. It also includes a feature to request up to $50 million in incremental term loans.
- Terms & Maturity: The agreement matures on October 30, 2030. Borrowings will accrue interest based on either SOFR (plus a margin of 2.50% to 3.25%) or ABR (plus a margin of 1.25% to 1.75%), dependent on the company's leverage ratio.
- Prior Facility Termination: In connection with this new agreement, the company terminated its prior credit facility dated July 31, 2025, with BOK Financial on October 29, 2026, and paid a termination fee of $350,000.